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Chesapeake Energy to Get $1.5 Billion Lifeline

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   |    Wednesday,December 04,2019

Chesapeake Energy announced today that it has engaged JPMorgan Chase Bank, N.A., Morgan Stanley Bank, N.A., Bank of America, N.A. and MUFG Bank, N.A. to assist with the arrangement of a secured first lien last out 4.5-year term loan facility in the aggregate principal amount of up to $1.5 billion.

Chesapeake intends to use the net proceeds of the loan to finance a tender offer and consent solicitation announced today for unsecured notes issued by Brazos Valley Longhorn, and Brazos Valley Longhorn Finance Corp., each a wholly owned subsidiary of Chesapeake, and to fund the retirement of Brazos Valley's existing secured revolving credit facility. 

Chesapeake annouced a drastically reduced 2020 development plan.  The plan calls for the company to invest $1.45 billion, down -40% from 2019. The company plans to operate  13 rigs, down from 20 the company operated in 2019.

Eagle Ford will have 4-6 rigs, Powder River will have (2-3) and Marcellus will have (2-3) rigs.

 



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